1
EEI Nov. 2009
44th Annual EEI Financial Conference
November 2009
- transforming investment into future value
Exhibit 99.1
2
EEI Nov. 2009
Certain statements contained herein, regarding matters that are not historical facts, are forward-looking
statements (as defined in the Private Securities Litigation Reform Act of 1995). These include statements
regarding management’s intentions, plans, beliefs, expectations or forecasts for the future. Such forward-
looking statements are based on the Corporation’s expectations and involve risks and uncertainties;
consequently, actual results may differ materially from those expressed or implied in the statements.
Such risks and uncertainties include, but are not limited to, general economic conditions, legislative and
regulatory changes, changes in demand for electricity and other products and services, unanticipated
weather conditions, changes in accounting principles, policies or guidelines, and other economic,
competitive, governmental, and technological factors affecting the operations, timing, markets, products,
services and prices of the Corporation’s subsidiaries. The foregoing and other factors are discussed and
should be reviewed in the Corporation’s most recent Annual Report on Form 10-K and other subsequent
periodic filings with the Securities and Exchange Commission. Forward-looking statements included
herein speak only as of the date hereof and the Corporation undertakes no obligation to revise or update
such statements to reflect events or circumstances after the date hereof or to reflect the occurrence of
unanticipated events or circumstances.
statements (as defined in the Private Securities Litigation Reform Act of 1995). These include statements
regarding management’s intentions, plans, beliefs, expectations or forecasts for the future. Such forward-
looking statements are based on the Corporation’s expectations and involve risks and uncertainties;
consequently, actual results may differ materially from those expressed or implied in the statements.
Such risks and uncertainties include, but are not limited to, general economic conditions, legislative and
regulatory changes, changes in demand for electricity and other products and services, unanticipated
weather conditions, changes in accounting principles, policies or guidelines, and other economic,
competitive, governmental, and technological factors affecting the operations, timing, markets, products,
services and prices of the Corporation’s subsidiaries. The foregoing and other factors are discussed and
should be reviewed in the Corporation’s most recent Annual Report on Form 10-K and other subsequent
periodic filings with the Securities and Exchange Commission. Forward-looking statements included
herein speak only as of the date hereof and the Corporation undertakes no obligation to revise or update
such statements to reflect events or circumstances after the date hereof or to reflect the occurrence of
unanticipated events or circumstances.
Important Note to Investors
James Torgerson
President and Chief Executive Officer
Anthony Vallillo
President and Chief Operating Officer, UI
Richard Nicholas
Executive Vice President and Chief Financial Officer
3
EEI Nov. 2009
UIL Corporate Structure
UIL Holdings Corporation
GenConn Energy LLC
50%
Ø Market cap of ~ $786 million*
Ø 1,058 employees
Retail Distribution
Transmission
The United Illuminating
Company (UI)
Company (UI)
Ø Joint venture between UI and NRG
Ø Peaking generation new build
Ø Regulated transmission
& distribution utility
& distribution utility
Ø ~ 324,000 customers
Ø Full revenue decoupling
mechanism
mechanism
Ø Weighted allowed
return on equity of
8.84% in 2009
return on equity of
8.84% in 2009
Ø Recently completed Middletown-
to-Norwalk transmission line
to-Norwalk transmission line
Ø Composite return on equity
approximately 12.5% in 2009
approximately 12.5% in 2009
Service Territory in CT
Ø 335 square miles
Ø Population of ~736,000
* As of 10/28/09
4
EEI Nov. 2009
Progressive pure-play
electric utility
electric utility
Transmission focus
(FERC Regulated)
Regulation
Ø Virtually 100% regulated
Ø Long history of National 1st quartile reliability performance
Ø 20 year leader in Conservation & Load Management programs
Ø Smart Grid - - ahead of the curve
Ø Estimated 38% of 2009 total rate base
Ø 2009 composite return on equity of approximately 12.5% and capital structure of 50% equity
Ø Identified future investment opportunities
Ø Recent distribution rate case includes favorable items such as revenue decoupling mechanism,
pension tracker and cost of debt tracking mechanism
Ø Expected enhanced stability and predictability of earnings
Ø 2009 blended transmission & distribution allowed return on equity of approximately 10.2%
UIL: progressive pure-play electric utility with significant growth opportunities and an attractive dividend yield
Conservative financial
strategy
strategy
Ø Commitment to investment grade credit profile
Ø Disciplined capital investment program
Ø Consistent history of dividend payments
High probability
growth
growth
Ø $1.7 billion of projected regulated capital and equity investment for 2009-2018
Ø Base plan provides significant growth 90+% probability of occurrence
Ø GenConn: cost-of-service electric generation development underway
Ø Proven ability to execute on capital projects, e.g. Middletown-to-Norwalk transmission line
Investment Highlights
5
EEI Nov. 2009
Total
2009-2018P
Distribution
95
$
141
$
147
$
141
$
122
$
534
$
1,178
$
Transmission
29
$
47
$
63
$
80
$
96
$
91
$
405
$
GenConn*
-
$
57
$
65
$
-
$
-
$
-
$
122
$
Total Base Capital Exp.**
* Equity investment - Devon plant in-service 6/1/10, Middletown plant in-service 6/1/11.
** Amounts may not add due to rounding.
($ in millions)
Base 10-yr CapEx Forecast
Ø High probability of occurrence (90+%)
» Identified projects with clear need and
regulatory support
regulatory support
Ø Reflects decline in future peak load
forecasts
forecasts
» Pushing out some capacity projects and dollars
beyond prior 10-yr plan
beyond prior 10-yr plan
Growth Opportunities Beyond Base Forecast
Ø Transmission investment within the
region
region
» Renewable Portfolio Standards driving new
transmission
transmission
» Policy support from New England Governors’
Energy Blueprint
Energy Blueprint
Ø Generation Opportunities
» Potential opportunity for ownership of base-
load generation
load generation
Base 10-yr Capital Expenditure Program
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EEI Nov. 2009
46%
35%
19%
47%
38%
15%
Rate base growth even with a declining CTA balance
51%
38%
11%
55%
37%
8%
59%
37%
4%
60%
39%
Avg. GenConn Rate Base Equivalent (UI’s share)
CAGR 5%
1%
$56m
$174m
$232m
$224m
Avg. GenConn Equity Investment (UI’s share)
$28m
$116m
$112m
$87m
Forecasted Average Rate Base 2008-2013
(Excluding GenConn Equity Investments)
(Excluding GenConn Equity Investments)
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EEI Nov. 2009
Opportunity / Enabler | Notes / Summary | Distribution | Transmission | In-State Generation | |
A | Renewable Portfolio Standards | Six of seven New England states have adopted standards. CT has limited means to comply. Possible collaboration among New England Transmission Owners. | ü | ü | |
B | New England Governors’ Blueprint | Published September ’09. Significant transmission build- out needed (potential $7B to $9B range, could be higher or lower) | ü | ü | |
C | Smart Grid | Advanced metering, enhanced monitoring and customer applications | ü | ü | |
D | Reliability, Capacity, Aging Infrastructure | On-going studies to assess future needs | ü | ü | |
E | Section 83 CT Public Act 07-242 | Allows UI to purchase, operate existing plants offered for sale within the state | ü |
Opportunities not included in 2009-2018 Base Plan
Growth - Opportunities / Enablers
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EEI Nov. 2009
RPS expected to create investment opportunities for UIL
Class I resources include energy derived from solar, wind, fuel cell, methane gas from landfills, ocean thermal, wave, tidal, run-of-river hydropower and sustainable
biomass. Data/tables from ISO-NE Update on New England Renewable Portfolio Standards (RPS) and Renewable Resources Outlook, May 15, 2009
biomass. Data/tables from ISO-NE Update on New England Renewable Portfolio Standards (RPS) and Renewable Resources Outlook, May 15, 2009
Class II resources include other biomass (NOx emission <0.2 lbs/MMBtu of heat input, began operation before July 1, 1998), small run-of-river hydroelectric (<5MW,
began operation before July 1, 2003) and municipal solid waste trash-to-energy facilities
began operation before July 1, 2003) and municipal solid waste trash-to-energy facilities
Class III include customer-sited combined heat and power (with operating efficiency >50% of facilities installed after January 1, 2006), waste heat recovery systems
(installed on or after April 1, 2007), electricity savings from conservation and load management programs (began on or after January 1, 2006)
(installed on or after April 1, 2007), electricity savings from conservation and load management programs (began on or after January 1, 2006)
Existing Renewables vs. Region-wide RPS CT RPS Requirements
Ø Requirement is ~3 times current renewables level
Ø Gap will likely be filled by renewables remote from load
-
10,000
20,000
30,000
40,000
50,000
2007
2009
2011
2013
2015
2017
2019
2021
Exist. Renew. Energy
RPS Reqmt
10.3%
12.7%
10.8%
30.1%
Growth - Renewable Portfolio Standards (RPS)
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EEI Nov. 2009
Study expected to create investment opportunities for UIL
Data from ISO-NE Preliminary Maps and Cost Estimates for Transmission Scenarios, July 17, 2009. View distorted intentionally.
ISO-NE Study:
Ø Basis for “Blueprint” is the
Renewable Development
Scenario Analysis
Renewable Development
Scenario Analysis
Ø Region can develop sufficient
wind resources to satisfy RPS
(and even export)
wind resources to satisfy RPS
(and even export)
Ø Various scenarios studied, e.g.:
Ø 2,000 MW on-shore and/or off-
shore
shore
Ø 4,000 MW on-shore and/or off-
shore
shore
Ø 8,000 MW on- and off-shore
Ø 12,000 MW on- and off-shore
Ø Various reinforcements of
interconnections
interconnections
Transmission Needed:
Ø Significant transmission build-out indicated
Ø Potential $7B to $9B range, could be higher or lower
~4,000 MW by 2030 ~12,000 MW by 2030
Growth - New England Governors’ Blueprint
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EEI Nov. 2009
GenConn Energy - Devon Site Under Construction
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EEI Nov. 2009
UI Equity Bridge Loan
Ø $121.5m in total à $88.3m drawn as of
9/30/09
9/30/09
» $57m due 6/1/10 with Devon in-service
» $64.5m due 6/1/11 with Middletown in-service
NRG Equity Bridge Loan
Ø $121.5m in total
GenConn Project Financing
Ø $291m in total à includes $48m working
capital facility
capital facility
Base Plan - GenConn Energy
Ø 50/50 debt/equity
Status
Ø Devon Plant
» Turbines enroute
Ø GenConn 2010 rate case to be filed no later
than December 3, 2009
than December 3, 2009
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EEI Nov. 2009
Empowering the Customer: Current State
“My Account” Dashboard
“My Account” Dashboard
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EEI Nov. 2009
Advanced Metering
Meters & Meter Equipment
Meter Data Management
2-way Mesh Network
Standards
Arc Flash Mitigation
Customer Applications
Enhanced Monitoring
Outage Management System
SCADA
Network Systems Communications
Home Area Network Stimulus
PHEV Charging Stations
Estimated Spend $83 million (2009-2018)
UI’s Smart Grid Base Plan
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EEI Nov. 2009
UI - Ahead of the Curve
Smart Grid Vision Established - Execution in Progress
Approximately 17% of UI’s Customers are on Time of Use rates
Fixed one-way wireless network since 2002
Ø Remote meter reading once a day
Ø Depending on customer class, meter reading capability
» Hourly
» In 15 minute intervals
Upgraded to a two-way mesh network in 2009
Ø Allows 2-way communication to and from meters
Ø Allows communication meter to meter
5,000 Advanced Metering Infrastructure (AMI) meters already installed
Ø 80,000 AMI meters to be installed by 2012
Ø Remote disconnect/reconnect capabilities
Ø Network outage notification and restoration verification
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EEI Nov. 2009
AMI Network
AMI Host
Software
Wireless Thermostat
Wireless
Dimmer
Wireless
Dimmer
Wireless
Switch
Wireless
Switch
Wireless
Keypad
InHome TM
Wireless Contact Switch
Home Heartbeat TM
Wireless Contact Switch
Home Heartbeat TM
Wireless Water
Sensor
Sensor
Wireless
Remote
Wireless
Outlet
Dimmer
Home Theater Controller
AC Load
Control
Direct Load
Control
Wireless Display
Energy
Management Services
HAN
Software
2-Way Mesh Network - already in place
First prototype Advanced Meters being installed
Enabling In-Home Displays & Load Control Appliances
Empowering the Customer: Future State
Interactive Devices and “Smart” Appliances
Interactive Devices and “Smart” Appliances
16
EEI Nov. 2009
CT Energy Efficiency Fund Activities in 2008
UI approximately 20%
UI has been a leader in energy efficiency programs for more than 2 decades
Leader in Conservation and Demand Response Programs
Ø Nationally and internationally
recognized for its programs
recognized for its programs
Ø Small Business Energy Advantage
Program incorporates innovative
“on-bill financing”
Program incorporates innovative
“on-bill financing”
Ø 973 million annual lifetime
kilowatt hour savings (5
-year average)
kilowatt hour savings (5
-year average)
Ø 528 thousand annual lifetime tons
of carbon dioxide emissions (5
-year average)
of carbon dioxide emissions (5
-year average)
Ø Annual pre-tax income
approximately $1 million
approximately $1 million
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EEI Nov. 2009
UI is a leading demand response provider throughout New England
Leader in Conservation and Demand Response Programs
Ø All the Home Depot, Walmart and
Kohl’s stores in New England
participate in UI’s Load Response
Program
Kohl’s stores in New England
participate in UI’s Load Response
Program
Ø 600 individual customer assets, 100
MW of load
MW of load
Ø Active in ISO-NE Market
Committee and Forward Capacity
Working Group to help create
demand response programs that
customers value
Committee and Forward Capacity
Working Group to help create
demand response programs that
customers value
Ø Annual pre-tax income
approximately $1-$2 million
approximately $1-$2 million
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EEI Nov. 2009
Total
Aging Infrastructure
36.0
$
49.1
$
39.7
$
48.4
$
57.5
$
276.9
$
507.4
$
Capacity
19.8
$
20.0
$
18.3
$
27.5
$
26.5
$
95.7
$
207.8
$
System Operations
12.6
$
16.1
$
12.5
$
10.1
$
9.1
$
53.8
$
114.2
$
Core Support
16.2
$
38.9
$
57.2
$
40.4
$
19.3
$
94.0
$
266.1
$
Smart Grid
(base)
10.0
$
16.8
$
19.2
$
14.2
$
9.4
$
13.4
$
83.0
$
Total Base Distribution*
Aging Infrastructure
Cable & Pole Replacement
Distribution Transformer
Replacement
Replacement
Splice Chambers
Substation Rebuilds
Substation Removals
Capacity
Shelton Substation
Bus Additions
Feeder Transfers
Core Support
IT related
Other support
Customer Projects
* Amounts may not add due to rounding.
Smart Grid
Advanced Metering
Meter Data Management
Outage Management
SCADA
2-way Mesh Network
($ in millions)
Base Plan - Distribution Investments
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EEI Nov. 2009
Advanced Metering Initiatives
Remote Connect/Disconnect
Meters & Meter Equipment
Outage Management System
Approximate cost: $48 million (2009-2018)
Status: On-going
* Although UI’s application was not granted by the DOE, UI will continue to invest in a range of previously approved projects designed to
increase its power grid’s capabilities and in doing so offer measurable benefits to its customers.
increase its power grid’s capabilities and in doing so offer measurable benefits to its customers.
Broadway Substation
Base Distribution (and Smart Grid*) Examples
Major Distribution Programs
Substations (capacity & aging infrastructure)
Splice Chamber Replacement
Cable Replacement
Approximate cost: $267 million (2009-2018)
Status: On-going
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EEI Nov. 2009
Substation Rebuilds
Line/Cable Replacement
Customer Projects
NERC/Cyber Security/IT related
SCADA
Total
Aging Infrastructure
3.9
$
24.9
$
33.2
$
30.2
$
39.6
$
67.0
$
198.8
$
Capacity
14.1
$
14.5
$
9.5
$
8.4
$
19.7
$
4.2
$
70.4
$
Standards Compliance/Other
11.4
$
7.1
$
19.8
$
41.5
$
36.6
$
19.7
$
136.0
$
Total Base Transmission*
Capacity
Standards Compliance/Other
*Amounts may not add due to rounding.
($ in millions)
New Substations
Reliability Projects
Aging Infrastructure
Base Plan - Transmission Investments
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EEI Nov. 2009
Shelton Substation
Approximate cost - $34 million
(60% Transmission, 40% Distribution)
Estimated in-service - June 2013
Status
Ø Preparing filing for CT Siting Council
Base - Transmission Project Examples
Grand Avenue Switching Station
Approximate cost - $62 million
(100% Transmission)
Estimated in-service - June 2012
Status
Ø CT Siting Council approval
Ø Continued preliminary design
22
EEI Nov. 2009
‘09 Transmission & Distribution Blended Allowed ROE Approx. 10.2%
Transmission
Distribution &
CTA
Generation
23
EEI Nov. 2009
Regulatory
Benefits from 2008 Distribution Rate Case
Ø Rate years 2/4/09 through 2/3/11
» Full revenue decoupling adjustment
» Cost of debt tracking mechanism
» Pension & postretirement expense is recoverable in rates or as a regulatory asset for
future recovery
future recovery
Ø Portion of uncollectible expense allocated to Generation Services Charge (GSC)
DPUC
Ø Initiated informational meetings to discuss "Impact of Recent Economic and
Financial Crisis on Utility Financing & Investment“
Financial Crisis on Utility Financing & Investment“
Ø New docket (DN 09-10-06) opened to investigate feasibility and desirability of
generic ROE proceeding
generic ROE proceeding
24
EEI Nov. 2009
3Q ’09 earnings from continuing operations of $21.7 million, or $0.73 per share,
compared to $21.5 million, or $0.86 per share, in 3Q ’08
compared to $21.5 million, or $0.86 per share, in 3Q ’08
YTD ’09 earnings from continuing operations of $47.6 million, or $1.74 per share,
compared to $39.4 million, or $1.57 per share, during the same period in ’08
compared to $39.4 million, or $1.57 per share, during the same period in ’08
Ø Successfully managing O&M costs
Ø Decoupling adjustment provided Commission-determined revenue requirement
Ø Reasonable opportunity to achieve distribution allowed return on equity (ROE)
Ø Underlying transmission growth - higher rate base and equity capitalization
Ø On track to earn transmission allowed weighted average ROE of approximately 12.5%
3Q & YTD 2009 Financial Results - Summary
25
EEI Nov. 2009
Quarter Ended September 30,
Nine Months Ended September 30,
2009
2008
Difference
2009
2008
Difference
UI
Distribution, CTA and Other
15.4
$
16.2
$
(0.8)
$
30.3
$
24.4
$
5.9
$
Transmission
6.9
6.1
0.8
19.2
17.0
2.2
Total UI Net Income
22.3
$
22.3
$
-
$
49.5
$
41.4
$
8.1
$
UIL Corporate
(0.6)
(0.7)
0.1
(1.8)
(1.8)
-
Total Continuing Operations
21.7
$
21.6
$
0.1
$
47.7
$
39.6
$
8.1
$
Discontinued Operations - Xcelecom
-
(0.1)
0.1
(0.1)
(0.2)
0.1
Total Net Income
21.7
$
21.5
$
0.2
$
47.6
$
39.4
$
8.2
$
Average Shares Outstanding - Basic
29.9
25.1
4.8
27.4
25.1
2.3
EPS
0.73
$
0.86
$
(0.13)
$
1.74
$
1.57
$
0.17
$
The dilutive effect of the May 2009 issuance of an additional 4,600,000 shares of common stock in the third quarter and first nine months of 2009
was $0.13 per share and $0.14 per share, respectively.
3Q & YTD 2009 Financial Results
26
EEI Nov. 2009
Ø Successfully managing O&M expense
Ø Decoupling adjustment provided DPUC-
determined revenue requirement
determined revenue requirement
Ø Regulatory true up favorable due to the
absence in 2009 of adjustments recorded in
2008
absence in 2009 of adjustments recorded in
2008
Ø Favorable uncollectible expense - portion
allocated to GSC ($0.2m in 3Q and $1.1m
YTD)
allocated to GSC ($0.2m in 3Q and $1.1m
YTD)
Ø Pension & postretirement expense
unfavorable variance primarily due to
negative impact of the financial markets
on pension and postretirement assets.
Such cost increases are fully recoverable
unfavorable variance primarily due to
negative impact of the financial markets
on pension and postretirement assets.
Such cost increases are fully recoverable
Transmission - - growth in both the quarter and YTD
Ø Earning on higher rate base
Quarter Ended
Nine Months Ended
September 30, 2009
September 30, 2009
Favorable/(Unfavorable) ($M)
vs. 2008
vs. 2008
Operating Revenues
Decoupling adjustment
1.5
$
3.9
$
Regulatory true up items
1.4
4.1
Distribution rates & pricing
(1.4)
1.5
Sales volume
(2.4)
(5.3)
Other
0.1
0.1
Operation and Maintenance (O&M) Expense
Customer service - allocated
(0.5)
1.6
Uncollectibles
1.2
3.3
Outside services and other expense
1.0
3.3
Pension & postretirement
(1.5)
(5.4)
Other
Distribution, CTA & Other Net Income variance
(0.8)
$
5.9
$
Distribution, CTA & Other Net Income
Earnings Details Compared to the Same Periods in 2008
Distribution, CTA & Other - favorable Net Income YTD
27
EEI Nov. 2009
Liquidity outlook
Ø UIL & UI have a $175 million joint credit
facility due December 22, 2011 - $50 million
of limit available for UIL
facility due December 22, 2011 - $50 million
of limit available for UIL
» No short-term borrowings outstanding under
this facility as of September 30, 2009
this facility as of September 30, 2009
Ø UIL also has an uncommitted money market
loan facility
loan facility
» No outstanding balance as of September 30,
2009
2009
Ø UI must pay off $121.5 equity bridge loan to
fund its portion of the contribution to
GenConn on the commercial operation date
for each facility, Devon June 2010,
Middletown June 2011
fund its portion of the contribution to
GenConn on the commercial operation date
for each facility, Devon June 2010,
Middletown June 2011
» Borrowings under this facility as of
September 30, 2009 were $88.3 million
September 30, 2009 were $88.3 million
Ø No plans to issue equity before the end of 2010
Debt maturity schedule as of 9/30/09 ($M)
$49.2
$51.0
$31.8
$57.0
$64.5
NONE
Debt Maturity and Liquidity
28
EEI Nov. 2009
2009 expectations are not intended to be additive.
Guidance Notes
Ø Raised low end of the 2009 earnings guidance from $1.83 per share
Ø Includes dilution from equity issuance
Ø Distribution, CTA & Other positioned for reasonable opportunity to achieve weighted average
allowed return on equity of 8.84%
allowed return on equity of 8.84%
Ø Transmission expected to earn an overall allowed weighted average return on equity of
approximately 12.5%
approximately 12.5%
Ø
2008
Nine Months Ended
September 30, 2009
2009 EPS Guidance
The United Illuminating Company
$2.03
$1.81
$1.97 - $2.07
Distribution, CTA & Other
1.09
1.11
1.05 - 1.15
Transmission
0.94
0.70
0.90 - 0.95
Corporate
(0.10)
(0.07)
(0.12) - (0.07)
Total Continuing Operations
$1.93
$1.74
$1.87 - - $1.97
(0.01)
Total UIL
$1.92
$1.74
YTD 3Q Earnings & 2009 EPS Guidance as of October 30, 2009
29
EEI Nov. 2009
2010 Earnings Drivers
Ø Earnings from GenConn - Devon
» On schedule to be in-service June 1, 2010
Ø Continual management of O&M expenses
Ø Executing on capital expenditure plan
» Rate base growth
Ø Non-rate base earnings opportunities
» Conservation & load management
» ISO-NE demand response
» Distributed generation incentives
Ø Earning distribution allowed ROE
30
EEI Nov. 2009
Progressive pure-play
electric utility
electric utility
Transmission focus
(FERC Regulated)
Regulation
Ø Virtually 100% regulated
Ø Long history of National 1st quartile reliability performance
Ø 20 year leader in Conservation & Load Management programs
Ø Smart Grid - - ahead of the curve
Ø Estimated 38% of 2009 total rate base
Ø 2009 composite return on equity of approximately 12.5% and capital structure of 50% equity
Ø Identified future investment opportunities
Ø Recent distribution rate case includes favorable items such as revenue decoupling mechanism,
pension tracker and cost of debt tracking mechanism
Ø Expected enhanced stability and predictability of earnings
Ø 2009 blended transmission & distribution allowed return on equity of approximately 10.2%
UIL: progressive pure-play electric utility with significant growth opportunities and an attractive dividend yield
Conservative financial
strategy
strategy
Ø Commitment to investment grade credit profile
Ø Disciplined capital investment program
Ø Consistent history of dividend payments
High probability
growth
growth
Ø $1.7 billion of projected regulated capital and equity investment for 2009-2018
Ø Base plan provides significant growth 90+% probability of occurrence
Ø GenConn: cost-of-service electric generation development underway
Ø Proven ability to execute on capital projects, e.g. Middletown-to-Norwalk transmission line
Investment Highlights
31
EEI Nov. 2009
Q&A
32
EEI Nov. 2009
Full revenue
decoupling
decoupling
Ø Annual true-up
» If revenues < approved, rates will be adjusted to collect additional revenues
» If revenues > approved, excess will be returned to customers
Ø Decoupling established for two-year pilot period
Other
Ø 50/50 Debt-to-Equity Capitalization with 8.75% ROE
Ø Approved 90% of proposed distribution capital program expenditures
Ø Transferred approximately $7 million of uncollectibles and other expense to
Generation Services Charge
Generation Services Charge
Pension
Ø Established a regulatory asset for a portion of 2009 increased pension and
postretirement expense
postretirement expense
» Future recovery of $10.2 million
Ø Pension tracker
» 2010 expense true-up based on year-end valuation, which takes into account
changes, if any, in asset values and the discount rate
changes, if any, in asset values and the discount rate
Cost of debt tracking
mechanism
mechanism
Ø Annual true-up
» If embedded debt cost after issuances, differs from allowed embedded cost of debt of
6.42% for 2009, 6.76% for 2010
6.42% for 2009, 6.76% for 2010
4 True up if min. 25 basis points and results in +/- $1.5 million interest expense or greater. $1.5
million deadband à true up covers amounts beyond +/- $1.5 million.
million deadband à true up covers amounts beyond +/- $1.5 million.
Overview of 2008 Distribution Rate Decision